Larsen & Toubro Limited informed that the Income Tax Department vide its order dated May 30, 2024 (received by the Company on May 31, 2024) has levied a penalty of INR 46,891,352/- in connection with tax proceedings for the AY. 2020-21 of erstwhile L&T Hydrocarbon Engineering Limited, wholly owned subsidiary which was merged with the Company with effect from 1st April 2021. Name of authority: Deputy Commissioner of Income Tax, Ministry of Finance, Mumbai.

Nature and details of the action(s) taken, initiated or order(s) passed;: Order passed under section 270 of the Income Tax Act, 1961 for alleged misreporting of Income and levying a penalty of INR 4,68,91,352/-. Date of receipt: May31, 2024. Details of violation: Pursuant to the income tax assessment of the Company and consequent adjustment in the returned income for the Assessment Year 2020-21, a penalty is levied on such adjustment to the returned income.

Impact on financial,operation and other activities: Based on the prevailing law and Company's judgement, the Company expects a favorable outcome against the appeal at the higher forum. There is no material impact on financial, operations or other activities of the Company.